California's nonpartisan auditor has released a report indicating that eight state agencies under Governor Gavin Newsom's administration are exhibiting serious issues related to waste, fraud, abuse, or mismanagement. The report categorizes these agencies as 'high-risk' and notes their failure to implement adequate corrective actions.

Among the agencies identified, four have received this designation during Newsom's tenure, including the Department of Social Services, which was added this year. The report highlights alarming findings, such as high error rates in food assistance benefit payments that could potentially cost the state $2.5 billion in federal funds. Additionally, ongoing fraud and improper payments in unemployment benefits are projected to cost billions more.

The auditor also pointed out that inadequate eligibility determinations for Medi-Cal, California's Medicaid program, could jeopardize billions in funding. Furthermore, the state has missed six consecutive financial reporting deadlines, which threatens its credit rating and federal funding.

The report criticizes the slow progress of state information technology projects, with many departments relying on outdated systems despite proximity to Silicon Valley's technological resources. Security concerns are also raised, as most state entities reportedly do not meet minimum standards for information security.

Physical infrastructure safety is another area of concern, with 49 dams classified as posing an 'extremely high hazard to life and property.' The number of dams rated as 'poor' or 'unsatisfactory' has increased by 73 percent over the past two years.

Examples of mismanagement include the state's unemployment insurance program, which purchased 7,224 mobile devices for remote work during the COVID-19 pandemic and continued to incur service fees for over 5,000 devices long after they were no longer in use. Another instance involved the California Air Resources Board, which continued to pay a former employee a salary of $171,446 for 15 months after their departure.

The report underscores a broader pattern of inefficiency, noting that California has spent $18 billion on a high-speed rail project over 18 years without laying any track. Additionally, $24 billion allocated for homelessness initiatives has been lost in tracking, coinciding with a rise in homelessness rates. During the pandemic, unemployment insurance fraud was estimated at $32 billion, and a $650 million 'Next Generation' 911 system was recently abandoned due to technological failures.

Despite these challenges, California residents face the highest taxes in the nation, with little return on investment in public services. Under Newsom's leadership, the state budget has increased by 50 percent, or $124 billion, in five years, while indicators of quality of life, such as poverty and homelessness rates, have worsened. This has led to a significant outflow of residents, as evidenced by California leading the nation in outbound U-Haul rentals for four consecutive years.

The report serves as a critical assessment of the current governance model, suggesting that the political class, exemplified by Newsom, remains insulated from the repercussions of these systemic failures. This is further illustrated by Newsom's controversial dining experience at the French Laundry during COVID-19 restrictions, which drew public ire.

As the state approaches the 2028 election cycle, the implications of these findings may have significant consequences for California's future governance and policy direction.